RSS

Managing Interest Rate Risk

25 Jul

If a financial institution has more rate-sensitive liabilities than assets, a rise in interest rates will reduce the net interest margin and income, and a decline in interest rates will raise the net interest margin and income.

Advertisements
 
Leave a comment

Posted by on July 25, 2011 in Finance

 

Tags:

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

 
%d bloggers like this: